Assurance Services

1. Which of the following is an incorrect phrase?

• Auditing is a systematic process

• Auditing objectively obtains and evaluate evidence

• Auditing evaluate evidence regarding assurance

• Auditing communicates results to interested users

  
  

1. An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation of measurement of a subject matter against criteria

• Assurance Engagement

• Attestation Engagement

• 1. Audit Engagement

• 1.  Management Consulting Engagement

1. Which of the following is NOT an element of an assurance engagement?

• Sufficient appropriate evidence

• Appropriate professional fees

• 1. A Subject Matter

• A  written assurance report

1. The person, persons or class of persons for whom the practitioner prepares the assurance report

• General public

• Responsible party

• 1.  Audit committee

• 1.  Intended users

1. The person or persons who in a direct reporting engagement, is responsible for the subject matter; or in an assertion-based engagement, is responsible for the subject matter information (the assertion), and maybe responsible for the subject matter.

• General public

•  Responsible Party

•  Audit Committee

• 1. Intended Users

1. These are the benchmarks used to evaluate or measure the subject matter including, where relevant, benchmarks for presentation and disclosure.

• Assertions

• Engagement process

•  Criteria

• 1. GAAP

1. The financial reporting framework adopted by management and, where appropriate, those charged with governance in the preparation of the financial statements that is acceptable in view of the nature of the entity and the objective of the financial statements, or that is required by law or regulation.

• 1. Generally accepted auditing standards

• Financial reporting standards

• Applicable financial reporting framework

• 1. Philippine standards in Auditing

1. A reasonable assurance engagement is one in which;

• 1. The aim is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement as the basis for a positive form of expression of the practitioner’s conclusion.

• The aim is a reduction in assurance engagement risk to a level that is acceptable in the circumstances of the engagement, but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the practitioner’s conclusion.

• 1. The auditor is responsible not only for the conclusion but also for the subject matter.

• None of the choices apply.

1. The three commonly sought type of assurance services are:

• 1. Audits, review, and compilations

• 1. Audits, compilations, and other assurance services

• 1. Reviews, compilations and other assurance services

• 1. Audits, reviews and other assurance services

1. This assurance engagements provides a limited level of assurance about the client’s historical financial statements;

• Financial statement audit

• Review of historical financial statements

• 1. Forecasts and projections

• 1.  agreed-upon procedures